Two Harcourt Centre office blocks for €50m
Joint agents JLL and Knight Frank are expected to seek in the region of €50m for Blocks 4 and 5 at the Harcourt Centre on Harcourt Road in Dublin city centre.
The sale of the properties on behalf of the Clancourt Group represents one of the first major disposals of office space this year.
Outside of the city centre, US real estate giant Hines is understood to have appointed Eastdil Secured, a subsidiary of the Wells Fargo Bank, to manage the sale of five office blocks at Cherrywood Business Park for a sum in the region of €160m. The proceeds of the proposed sale of those properties are expected to be deployed by Hines in the provision of roads, and utilities such as gas, electricity and water, and parks for the €2bn Cherrywood scheme, which commenced development recently.
In terms of the sale of blocks 4 and 5 at the Harcourt Centre, prospective purchasers can expect to secure an initial yield of 4.25pc based on the current annual rental income of €2.17m and weighted average unexpired lease term of 5.88 years. The yield is expected to increase to approximately 5pc once rent reviews are completed and a cafe-restaurant premises on the ground floor is let.
Block 4 Harcourt Centre is a six-storey over basement office building. Developed in 1998, the building extends to 2,684sq m (28,900 sq ft) and is let to Europa Business Centre (trading as Regus Business Centre) on a 25-year lease with 6.2 years of that lease left to run.
While the building is producing annual rental income of €817,000 (€27.25 per sq ft), this is expected to increase significantly once a rental review which has been outstanding since the middle of last year is completed.
An indication of the expected additional rental income can be gleaned from the €58 per sq ft achieved with recent lettings in block 5
Elsewhere in Dublin city centre, agents QRE are guiding a price of €1.75m for No 12 Mount Street Upper, a four-storey, over-basement Georgian property together with a coach house and parking to the rear.
Overall, the total floor area extends to approximately 351 sq m (3,788 sq ft). Internally the property has retained many original features including decorative cornices and fireplaces.
The coach house is subject to a lease (expiry December 31, 2017) at a rent of €11,500 per annum, while the main building is being offered with vacant possession of the basement to second floor. The third floor is subject to a residential tenancy.
No 12 is expected to generate strong interest, coming to the market as it does following the recent sale by Richard Bielenberg of Colliers International of No 45 Mount Street Upper for €2m to an overseas investor. The price achieved by Mr Bielenberg represents a premium of €200,000 on the property's €1.8m guide price.
Commenting on No 12, Ellen Prenderville of QRE said: "Given the demand for Georgian accommodation at present, this opportunity is likely to appeal to wide variety of owner-occupiers and investors."